Vietnam has enjoyed tremendous, steady GDP growth in recent years, attracting more and more expats that work primarily in the thriving manufacturing and service industries and allowing an ever larger chunk of its young, dynamic 97+ million population to afford more and more sophisticated products, indulge in more westernised customs, while retaining a strong sense of traditions, including eating and drinking out. A former French colony and open to sea and land trades, Vietnam indeed displays a lot of charme.
The imported wine market in Vietnam is now more exciting than ever with quality and quantity constantly increasing by year. The Vietnamese appear to have beaten the Japanese and Indian in such an unfairly matched game of alcohol consumption growth rate where the rate in Vietnam is twice the runner-up.
Vietnamese drinkers knocked back 4.2 billion litres of alcohol in 2019, an increase of 90% over ten years, making the Country the leading market for alcohol in Southeast Asia, and very soon Asia. Therefore it is inevitable for global products to pour into this young, potential market. Revenues in the wine segment amount at the time of writing (October 2020) to USD243 million in 2020. The market is expected to grow annually by 8.6%.
Economists see Vietnamese drinkers’ growing taste for wine as evidence of the creeping westernisation of the Country. In 2018, the total import turnover of wine reached USD53.2 million, an increase of 85% compared to 2010. According to statistics of the Vietnam Alcohol and Beverage Association, there are currently only fifteen companies in Vietnam producing and bottling wine with an annual output of about 12-13 million litres.
The General Statistics Office announced in the latest report that the growth rate of imported wine has increased by about 25% per year since 2004. Between 2017 and 2021, the total food and beverage sales are expected to grow at a compound annual average rate of 11.3%. From 2010 up until the present, there has been a steady increase in wine imports to Vietnam with an annual rate of 10%. The popular division of wine in Vietnam is based on the Country of origin, with favourites being the “usual suspects”, namely France, the USA, Chile, Italy and Australia.
French brands ranked first in the wine supplies in Vietnam, holding 35% of the wine market share, followed by the Chilean at 25%. Italy, Spain and the USA, are the next Countries of origin on the list, as the number of wines coming from these Countries keeps increasing every year. In 2019, the growth rate of imports of French and Italian wines to Vietnam was up 20%. Vietnam is being targeted as a massive potential market in Asia by French and Italian wine suppliers, since, as mentioned earlier, its annual growth rate remain steadily at 10%.